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Federal Contractor Misconduct Database (FCMD)

The federal government routinely awards contracts to companies with histories of misconduct, including contract fraud and other violations. POGO believes that providing this website will help to improve contracting decisions and increase public knowledge of how the government spends billions of taxpayer dollars each year. Read more…

Air Force Battlefield Communications Contracts False Claims – Criminal Settlement

Northrop Grumman Systems Corporation (NGSC) settled civil and criminal investigations into overbilling on two battlefield communications contracts with the U.S. Air Force. The company admitted that employees deployed to an air base in the Middle East defrauded the Air Force of millions of dollars by overbilling time charged to the Battlefield Airborne Communications Node (BACN). Specifically, from January 2011 to October 2013, NGSC employees charged exactly 12 or 13.5 hours per day, seven days a week, despite the fact that the employees were not working those hours, or were not engaged in work-related activities during those hours. For example, some employees billed for hours spent doing leisure activities, such as golfing, skiing, visiting amusement parks, clubs and shopping malls, and watching the Super Bowl. NGSC agreed to forfeit $4.2 million. NGSC simultaneously settled a civil investigation into the matter (see Northrop Grumman instance, “Air Force Battlefield Communications Contracts False Claims – Civil Settlement”).

Misconduct Type
Government Contract Fraud
Enforcement Agency
Multiple Agencies
Contracting Party
Defense - Air Force
Court Type
Criminal
Disposition
Non-Prosecution Agreement
Date of Non-Prosecution Agreement
10/31/2018
Contractors Involved Penalty
Total
Northrop Grumman $4,200,000
Further Information Released
U.S. Attorney’s Office Press Release 11/2/2018
Non-Prosecution Agreement 10/31/2018

See also:

Federal Contractor Misconduct Database